A Certificate Account is similar to a savings account, the major difference being you agree to keep a pre-determined amount of money in the certificate account for a specified amount of time. In exchange for agreeing to keep your money in the account for the term of the certificate, you are guaranteed a higher interest yield.

There are two types of Certificate Accounts - Regular and Individual Retirement Account (IRA). Each have terms ranging from 6 months to 60 months. Each type of Certificate Account has its own conditions and restrictions. Both are subject to penalties for early redemption.